Alfonso Gómez Palacio G.

59, president, the Acros Whirlpool Unit of Vitro; chairman of the board (glass containers), 1999-present; president (glass containers), 1994-1999; executive vice-president (glass containers), 1992-1994; commercial vice-president (glass containers), 1985-1992. Master’s, administration, University of California at Berkeley; bachelor’s, science, University of California at Berkeley; Diploma, advanced studies in administration and commerce, University of Burdeos, France.

2000 Results

In 2000 Acros Whirlpool’s sales volume grew 19%. The unit accounted for 20% and 15% of Vitro’s consolidated revenue and EBITDA in 2000, respectively. Net sales rose to US$564 million, a 14% rise in dollar terms and a 4% gain in constant pesos. Approximately 70% of these sales were domestic and 30% exports. The composition of these sales was refrigerators 49%, washers 25%, ranges 20%, related components 6%.

EBITDA amounted to US$86 million, a 6% increase in dollar terms and a 3% drop in constant pesos. Margins suffered pricing pressures from low-cost imports from Asia, particularly in the 16 to 18 cubic foot refrigerator segment.

Exports were US$168 million, a 2% increase versus 1999. This increase was primarily due to relatively soft Central American and Caribbean market demand.

“Jessica and Andrés check out the company's new lines of nine and eleven-foot two-door refrigeratores, as well as its new compnct laundry center.”

Review

Acros Whirlpool provides a full line of recognized brand name products such as ranges, refrigerators, clothes washers and dryers, dishwashers, air conditioners, blenders, ovens and hoods. It also makes related components.

Acros Whirlpool offers these brands: Whirlpool, Acros, Supermatic, Estate and Kitchen Aid. It also manufactures products under the Bluepoint, Roper and Kenmore brands.

The unit’s goals are to improve customer and consumer satisfaction, extend into new value-added product markets (including air conditioners, microwave ovens and imported Kitchen Aid product lines), and generate increasing value for employees and shareholders. Specifically, Acros Whirlpool is building on its initiatives to grow domestic and export sales, enhance total cost productivity, and reduce finished goods inventories and accounts receivable.

 

Business Outlook

Refrigerators
In anticipation of increasing competition from Asian manufacturers and to maintain its leading domestic position, the unit is expanding its range of value-added products. In 2000 Acros Whirlpool successfully launched new lines of nine and eleven-foot, two-door refrigerators under its Acros brand. To meet the more compact space requirements of U.S. residential homebuilders and owners, Acros Whirlpool is reducing the height of its popular 16 cubic foot refrigerator. The unit is also giving a new look to its 14, 16, and 18 foot refrigerator doors and interiors in line with changing consumer preferences.

Washers/Dryers
The unit is leveraging its Whirlpool manufacturing capability to transition out of low-cost washers. In 2000 Acros Whirlpool successfully launched a new line of automatic washers under the Whirlpool brand and a new washer/dryer combination (compact laundry center). The unit is also importing certain Whirlpool products from Brazil to offer customers an alternative to its broad range of washers.

Ranges
Acros Whirlpool is taking advantage of growing domestic demand to provide customers a broader range of high-end products. Specifically, Acros Whirlpool has invested approximately US$55 million over the last two and one half years to develop a new, more efficient platform of AGA (American Gas Association) approved ranges. To ensure that these ranges meet its exacting quality standards, the unit postponed the ranges’ domestic launch to 2001. The ranges’ launch is now scheduled for the summer of 2001.